SEC Extends ECIP Applications Deadline to End of 2024
The Securities and Exchange Commission (SEC) has some good news for non-compliant, delinquent, suspended, and revoked corporations. They now have until the end of the year to take advantage of reduced fines and penalties for late or non-filing of their reports.
The Commission recently issued SEC Memorandum Circular (MC) No. 17, Series of 2024, which extends the deadline for Enhanced Compliance Incentive Plan (ECIP) applications until December 31, 2024. This plan allows these corporations to settle their fines and penalties at significantly lower rates.
If you find yourself in the non-compliant or delinquent category, you can settle your fines and penalties for only P20,000. And if your registration has been suspended or revoked, you only need to pay 50% of your assessed fines and penalties, plus a processing fee of P3,060 to lift the suspension or revocation.
To apply for ECIP, submit your Expression of Interest through the Electronic Filing and Submission Tool (eFAST) along with your latest AFS and GIS by December 31, 2024. Failure to meet this deadline will result in forfeiture of the ECIP fee.
Over 3,200 corporations have already taken advantage of this opportunity, but if you haven’t completed your application yet, you still have until the end of the year to do so.
It’s important to act fast because at the end of the ECIP period, higher fines and penalties will be implemented. The new rates are significantly higher compared to the previous rates that were in place for over two decades. So, if you want to avoid these hefty fines, make sure to apply for ECIP before the deadline.
Remember, under the Revised Corporation Code, corporations that fail to submit reportorial requirements three times within a five-year period may have their registration revoked. To avoid this, make sure to apply for ECIP and settle your fines and penalties before it’s too late.
